WASHINGTON — The Federal Deposit Insurance Corp. said Monday banks may get favorable regulatory treatment for assisting areas damaged by Hurricane Irene.
Loans or other investments that "revitalize or stabilize federally designated disaster areas" could help boost banks' scores on Community Reinvestment Act exams, the FDIC said in a letter to institutions. The agency also said examiners would not criticize "prudent efforts" to adjust loan terms to help borrowers in areas affected by the weekend storm.
"Extending repayment terms, restructuring existing loans, or easing terms on new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution," the FDIC said.
The agency said it will also consider regulatory relief from certain filing and publishing requirements for institutions affected by the hurricane. "The FDIC understands that the damage caused by the hurricane may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations," the regulator said. "Banks experiencing disaster-related difficulties in complying with any publishing or other requirements should contact the appropriate FDIC Regional Office."
